Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available at the end of the year: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 330,000 868,000 97,000 Retail $ 480,000 1,240,000 51,000 21,000 1,215,000 Estimate ending inventory and cost of goods sold (average cost). Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available at the end of the year: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost $ 330,000 868,000 97,000 Retail $ 480,000 1,240,000 51,000 21,000 1,215,000 Estimate ending inventory and cost of goods sold (average cost).

Note:-

  • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
  • Answer completely.
  • You will get up vote for sure.
Cost
Retail
Cost-to-Retail
Ratio
Beginning inventory
Plus: Net purchases
Freight-in
Net markups
Less: Net markdowns
$ 400,000 $
535,000
905,000
1,310,000
45,000
0
0
58,000
0
28,000
Goods available for sale (excluding beg.
950,000
1,340,000
Inventory)
Goods available for sale (including beg. Inventory)
1,350,000
1,875,000
Cost-to-retail percentage
70.90%
Less: Net sales
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
0
1,250,000
$
625,000
$ 1,350,000
Transcribed Image Text:Cost Retail Cost-to-Retail Ratio Beginning inventory Plus: Net purchases Freight-in Net markups Less: Net markdowns $ 400,000 $ 535,000 905,000 1,310,000 45,000 0 0 58,000 0 28,000 Goods available for sale (excluding beg. 950,000 1,340,000 Inventory) Goods available for sale (including beg. Inventory) 1,350,000 1,875,000 Cost-to-retail percentage 70.90% Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 0 1,250,000 $ 625,000 $ 1,350,000
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